Which statement best distinguishes sole source procurement from single source procurement?

Which statement best distinguishes sole source procurement from single source procurement?

• A. Sole source is chosen when there is only a single vendor in the market
• B. Sole source arises from inability to obtain competition due to a proprietary right; Single source directs to one source due to standardization or warranty
• C. Single source requires open competition; Sole source does not
• D. They are the same concept with different names

Answer: (B)

The key idea here is how competition and justification differ between the two procurement approaches. Sole source procurement occurs when there’s no real competition because a proprietary right or unique capability restricts the market to a single supplier. In other words, only that vendor can meet the requirement, so a competitive process isn’t feasible. Single source procurement, by contrast, is about directing the purchase to one supplier even though other vendors exist. The justification is typically to achieve standardization, interoperability, or a reliable warranty/maintenance arrangement, or to maintain continuity with an existing supplier for reasons like compatibility or speed. So the best distinction is that sole source arises from an inability to obtain competition due to proprietary rights, while single source is chosen for reasons of standardization, compatibility, or warranties. The other statements are off because a sole source isn’t necessarily the only vendor in the market, single source does not require open competition, and they are not the same concept.

The key idea here is how competition and justification differ between the two procurement approaches. Sole source procurement occurs when there’s no real competition because a proprietary right or unique capability restricts the market to a single supplier. In other words, only that vendor can meet the requirement, so a competitive process isn’t feasible.

Single source procurement, by contrast, is about directing the purchase to one supplier even though other vendors exist. The justification is typically to achieve standardization, interoperability, or a reliable warranty/maintenance arrangement, or to maintain continuity with an existing supplier for reasons like compatibility or speed.

So the best distinction is that sole source arises from an inability to obtain competition due to proprietary rights, while single source is chosen for reasons of standardization, compatibility, or warranties. The other statements are off because a sole source isn’t necessarily the only vendor in the market, single source does not require open competition, and they are not the same concept.